A: The competitive market plays the role of equalizer. In a free market economy there are checks and balances in supply and demand. [ Competition allows buyers the opportunity to receive the best value for their money .The role of the government in the competitive market is to eliminate negative externalities, the government which also ensures that there is free entry and exit into a competitive

market industry. On the hand there exist monopolies in the market that are financed by the government and the reason for this is to provide goods that may be too expensive to provide. The government will however in most cases encourage competition whereby competition results into optimal pricing in the economy. ]